Why is a Bitcoin Trader Skew Warning of Local BTC Price Tops?
Popular trader Skew warned of a “headline curse” in his most recent research on X on July 23, as US spot Bitcoin ETFs received over $500 million in trading volume. This week has seen a rise in interest in Bitcoin ETFs, but Skew noted that these positive developments are not likely to last. He issued a warning after the BlackRock iShares Bitcoin Trust (IBIT), the biggest US spot ETF, experienced $526 million in inflows on June 22 alone. He pointed out that historically, days with such high inflows have followed sell-offs in BTC prices.
As bullish as this is each other time IBIT reported mid-high 9 fig inflow days it occurred around market supply zones,
Skew
$533.6 Million Inflows in US Spot ETFs on July 23: Potential Market Implications
Data from various sources, such as the UK-based investment business Farside Investors, indicates that the net flow total for US spot ETFs on July 23 was 533.6 million, the highest amount since March. The market dropped approximately 25% between March and when BTC/USD reached its all-time high, which remains today.
So in terms of actually trading this, the obvious part is now does the market sustain this demand & momentum for higher prices,
Skew
He emphasized that in order to maintain existing levels and potential increases, there must be consistent demand for spots, spot takers absorbing supply, and total seller absorption.
FAQ
What Does it Mean When the Bitcoin Price Reaches a Local High?
A local peak in the Bitcoin price means that in the short term, the price may have reached its highest level, after which a correction or pullback may occur.
How do ETF Inflows Affect the Bitcoin Price?
ETF inflows indicate that demand for Bitcoin is increasing, and more investors are investing in Bitcoin ETFs. This can lead to an increase in the Bitcoin price, but it also brings the risk of a correction in cases of overbuying.
What is the Long-term Outlook for the Bitcoin Price?
The long-term outlook for the Bitcoin price is generally considered positive. Increased interest from institutional investors and the proliferation of ETFs could support Bitcoin’s long-term value.
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